1. Crafting the Brand Positioning10
Crafting the Brand Positioning
Marketing Management, 13th ed

2. Marketing Strategy Segmentation Targeting Positioning
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3. What is Positioning?
Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.
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4. Value Propositions Perdue Chicken Domino’s
More tender golden chicken at a moderate premium price
Domino’s
A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price
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5. Differentiation Strategies
Product
Personnel
Channel
Image
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6. Product Differentiation
Product form
Features
Performance
Conformance
Durability
Reliability
Reparability
Style
Design
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance
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7. Personnel Differentiation: Singapore Airlines
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8. Channel Differentiation
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9. Image Differentiation
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10. Claims of Product Life Cycles
Products have a limited life
Product sales pass through distinct stages each with different challenges and opportunities
Profits rise and fall at different stages
Products require different strategies in each life cycle stage
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11. Figure 10.1 Sales and Product Life Cycle
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12. Figure 10.3 Style, Fashion, and Fad Life Cycles
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13. Product Life-Cycle Marketing Strategies
Marketing Strategies: Growth Stage
Improve product quality and add new product features and improved styling
Add new models and flanker products
Enter new market segments
Increase distribution coverage and enter new distribution channels
Shift from product-awareness advertising to product-preference advertising
Lower prices to attract next layer of price-sensitive buyers
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14. Product Life-Cycle Marketing Strategies
Marketing Strategies: Maturity Stage
Market Modification
Expand number of brand users by:
Converting nonusers
Entering new market segments
Winning competitors’ customers
Convince current users to increase usage by:
Using the product on more occasions
Using more of the product on each occasion
Using the product in new ways
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15. Product Life-Cycle Marketing Strategies
Marketing Strategies: Decline Stage
Increase firm’s investment (to dominate the market and strengthen its competitive position)
Maintain the firm’s investment level until the uncertainties about the industry are resolved.
Decrease the firm’s investment level selectively by dropping unprofitable customer groups, while simultaneously strengthening the firm’s investment in lucrative niches
Harvesting (“milking”) the firm’s investment to recover cash quickly
Divesting the business quickly by disposing of its assets as advantageously as possible.
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16. Marketing Product Modifications
Quality improvements
Feature improvements
Style improvements
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17. Ways to Increase Sales Volume
Convert nonusers
Enter new market segments
Attract competitors’ customers
Have consumers use the product on more occasions
Have consumers use more of the product on each occasion
Have consumers use the product in new ways
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18. See text for complete table
Summary of Product Life-Cycle Characteristics, Objectives, and Strategies
Introduction
Growth
Maturity
Characteristics
Sales
Low sales
Rapidly rising sales
Peak sales
Costs
High cost per customer
Average cost per customer
Low cost per customer
Profits
Negative
Rising profits
High profits
Customers
Few
Growing Number
Stable number beginning to decline
See text for complete table
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